Chuck Robbins, Cisco CEO, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22, 2025.
Gerry Miller | CNBC
Cisco reported better-than-expected profit and revenue for its fiscal first quarter on Wednesday. The stock rose in extended trading.
Here’s how the company did in comparison with consensus estimates from LSEG:
- Earnings per share: $1 adjusted vs. 98 cents expected
- Revenue: $14.88 billion vs. $14.77 billion expected
Revenue increased 8% from $13.84 billion in the same period a year earlier. Net income climbed to $2.86 billion, or 72 cents per share, from $2.71 billion, or 68 cents per share, a year ago.
It’s the fourth straight quarter of growth for Cisco following a stretch of four consecutive year-over-year revenue declines, as the company contended with economic uncertainty and delayed spending from government agencies.
Cisco’s networking business, its biggest unit, saw sales climb 15% to $7.77 billion. Analysts were expecting revenue for that segment of $7.47 billion, according to StreetAccount.
Most of the growth in data center spending is focused on artificial intelligence, as companies bolster their investments in servers packed with graphics processing units, primarily from Nvidia. Cisco is trying to tie itself more closely to the AI boom, and last month introduced a new Ethernet switch based on Nvidia silicon.
Cisco shares are up 25% this year as of Wednesday’s close, topping the 21% gain for the Nasdaq.
